Global investment firm Partech announces its 2019 milestones and investment in African fintech startups
Partech is a global investment firm with offices in San Francisco, Paris, Berlin and Dakar has announced the completion of eight transactions, six new deals and two follow-on investments in 2019.
The firm, which also this year announced its presence in East Africa has also deployed according to target mostly on Series A & B, half of these tickets ranging between $3M and $7M. It has also ventured in late seed with two companies, impressed with the quality of their founders and their early achievements. So, in total, Partech has welcomed six (6) new outstanding teams into the growing Partech Africa branch of the larger Partech Family. The nine portfolio companies work from six countries in Africa and together have an extremely large impact in their spaces: more than one hundred thousand merchants being served, four billions dollars of financial transactions per year, 20M+ end-users, etc.
While most of the new portfolio companies are yet to disclose their funding, Partech says in a statement that it finds that those who did are a fair representation of this group.
Kudi, for example, announced in April 2019 a $5M round led by Partech. This leader in digital payments and collection for the cash economy in Nigeria has maintained a brisk pace: in less than a year, Kudi has grown its network and revenues by five times while maintaining a very high capital efficiency.
Yoco, on the other hand, is the leading South African fintech that builds tools and services to help entrepreneurs start, run and grow their businesses. In September, the company launched the Yoco Go, the most affordable card machine the market has ever seen. Since then, Yoco has been adding new merchants at an unprecedented rate, now servicing more than 64 000 merchants across South Africa and well on track to double their merchant base this year.
In Nigeria, TradeDepot, a mobile B2B trade platform that connects retailers in emerging markets directly to FMCG brands for ordering and delivery, has reached c. 30k active retailers in Nigeria alone with a GMV and revenue growth over 4x on a yearly basis.
“These companies have validated our investment strategy: outstanding team, with validated model, addressing fundamental economic opportunities that will build the next African champions. We will continue to focus on financial inclusion, online and mobile consumer services, as well as mobility, supply chain services and digitization of the informal economy,” says Tidjane Dème, General Partner at Partech Africa.
As underlined in the Partech annual reports over the past few years, this is a fast-growing ecosystem. “Even with 6 new investments this year and two re-investments, we had to be extremely selective: we’ve engaged over 600 companies raising money this year, among them many great startups led by strong entrepreneurs. It proves that the skyrocketing numbers of tech fundraising in Africa are supported by strong fundamentals,” adds Cyril Collon, General Partner at Partech Africa.